As motorists, you realise that unexpected occurrences — such as car accidents — can happen at any time, regardless of how cautious you are on the road. In the unfortunate event of a car accident, knowing how to navigate the insurance claim process can be a life-saver. In the UK, specific steps must be followed when filing an insurance claim post-accident. This article provides a comprehensive guide on how to go about this crucial process.
Understanding Your Insurance Policy
Before diving into the steps of making a claim, it’s essential to understand the nature of your insurance policy.
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Insurance policies differ depending on the insurer’s offerings and what you opted for when purchasing. In the UK, three main types of car insurance policies exist: third-party only, third-party fire and theft, and comprehensive.
Third-party only is the minimum coverage required by UK law. It covers damages or injuries you cause to other people and their property but does not pay for any damage to your own vehicle.
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Third-party, fire and theft offers a bit more protection. In addition to covering third-party damages, it also includes coverage for your car if it’s stolen or damaged by fire.
Comprehensive insurance, as the name suggests, provides the most extensive coverage. It covers damage to your own vehicle, even if the accident was your fault, on top of the benefits provided by the other two policies. Remember to review your insurance policy to determine the extent of your coverage.
Reporting the Accident
In the aftermath of a car accident, the first step is to report it to the police and your insurance provider.
The law in the UK mandates that you must report a car accident to the police within 24 hours if anyone was injured. Even if nobody was hurt, it’s still wise to report the accident to have an official record on file.
Similarly, inform your insurance provider about the accident as soon as possible. Your policy likely requires you to do this, and failure to promptly report the incident could lead to your claim being denied. When contacting your insurer, have your policy number at hand and be ready to provide details about the accident.
Making the Claim
Once you’ve reported the accident, the next step is to make a formal claim.
To make a claim, you’ll need to gather all relevant information and documents. This includes the contact and insurance details of the other party involved in the accident, photographs of the accident scene, and any medical reports if injuries were sustained.
Keep a record of any expenses you’ve incurred as a result of the accident. This could be anything from repair costs and medical bills to lost wages if you had to take time off work.
Dealing With Your Insurer and the Ombudsman
Once your claim is submitted, your insurer will investigate the incident and decide whether to accept your claim.
If your claim is rejected and you believe it was done so unfairly, you have the right to complain. Start by filing a complaint with your insurance company. If they don’t resolve the issue to your satisfaction, you can escalate the matter to the Financial Ombudsman Service.
Protecting Your No Claims Bonus
One concern motorists often have after an accident is the impact on their no claims bonus. This is a discount awarded by insurers for each year you don’t make a claim.
Fortunately, not all claims will affect your no claims bonus. If the accident wasn’t your fault and your insurer can recover the costs from the other party’s insurer, your no claims bonus should remain intact.
However, if the accident was your fault, or the costs can’t be recovered, your no claims bonus may be affected. It’s worth noting that you can protect your no claims bonus by adding a protection cover to your insurance policy.
Handling an insurance claim after a car accident can be a daunting task. However, by understanding your insurance policy, promptly reporting the accident, compiling all necessary documents, and effectively dealing with your insurer, you can navigate the process more smoothly.
Understanding Deductibles and Excess
The road to claiming insurance after a car accident often includes decoding terms like deductibles and excess. In the UK, "excess" is the amount you agree to pay towards a claim, while a "deductible" is a term used more commonly in the US with a similar implication.
When you purchase your car insurance, you’ll have the option to choose your policy excess. This amount is what you’ll need to contribute towards a claim. For example, if the repair costs after an accident are £500 and your excess is £200, your insurer would pay £300.
There are two types of excess: compulsory and voluntary. A compulsory excess is set by the insurer and can’t be changed. The voluntary excess is an amount you choose to pay in addition to the compulsory excess. The higher the voluntary excess you agree to, the lower your insurance premium is likely to be. However, remember that in the event of a claim, you’ll need to pay both the voluntary and compulsory excess.
The relationship between excess and your claim is important. If the damage to your vehicle is minor and the repair cost is less than your excess, it may not be worth making a claim. Doing so could influence your no claims bonus and increase your future premiums.
When to Involve a Solicitor
In more complicated cases, particularly involving severe injuries or disputes about fault, it may be necessary to involve a solicitor.
A solicitor can provide professional advice to help you navigate the complexities of a claim, handle negotiations with insurers, and possibly represent you if the case goes to court. They can also assist in compiling evidence for the claim, such as medical reports and witness statements.
If you decide to hire a solicitor, you’ll need to consider how to cover their fees. Some solicitors may work on a no-win, no-fee basis, meaning you’ll only pay them if your claim is successful. However, not all solicitors offer this, so it’s important to discuss payment arrangements upfront.
Conclusion
Claiming insurance after a car accident in the UK can be a complex process, but understanding the steps involved can make it more manageable. Knowing the details of your insurance policy, including the type of coverage and your policy excess, is essential. Reporting the accident promptly, gathering all necessary documents, and effectively dealing with your insurer can help ensure a successful claim.
In cases involving serious injuries or fault disputes, enlisting the help of a solicitor can be beneficial. Remember, the goal is not just to get through the process but to ensure that you receive the compensation you deserve for any damages or losses incurred.
While nobody wants to be in a car accident, being prepared and knowing how to handle the situation can help alleviate some of the stress and confusion that often accompanies such unfortunate events.
